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5 Construction Management Processes And Practices Applicable To Small Projects Construction management aims to remove the inherent difficulty in construction projects in order to make th[r]

Fundamentals of Construction Management

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Dr Abimbola Windapo

Fundamentals of Construction

Management

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4.4 The Project Environment 127

5 Construction Management Processes

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Foreward

This book is based on a series of lecture notes used by the author for teaching the following subjects: Management of Building Projects (University of Lagos), Construction Management I & II (Caleb University, Lagos), and Construction Management (University of Cape Town) between 1996 and 2012 The book is also based on research undertaken and personal work experience of the author, and other contemporary construction management and management literature

Dr Abimbola Windapo

Abimbola.windapo@uct.ac.za

Dept of Construction Economics and Management

University of Cape Town

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Heartfelt gratitude goes to the following individuals who have supported and contributed to this publication in various ways:

• Bayonle Windapo: Design, images and layout

• Luqman Oyewobi: various contribution including materials for this book

• Ian Jay: materials on Systems Theory

• James Rotimi: Advice and Peer Review

• Glenda Cox: UCT OER support

Table of Figures

Figure 1 a: Building Details

Figure 1 b: Building Details

Figure 2: Construction Management at the centre of both Company and Project Management

Figure 3: Process View of Systems

Figure 4: Process view of Control Systems

Figure 5: Complexity: Systems and Channels of Communication

Figure 6: A Systems view of Managing Construction

Figure 7: Relationships between construction teams

Figure 8: Quality of Relationships between construction teams

Figure 9: Inherent difficulty of construction projects

Figure 10: Example of a Straight Forward Construction Project

Figure 11: Example of a Worst Case Construction Project Network

Figure 12: Basic concepts in theory of construction management

Figure 13: Construction organizations

Figure 14: A Decision Matrix

Figure 15: A Decision Tree Structure

Figure 16: ABC Analysis

Figure 17: Critical Path/Network

Figure 18: Sectors within the Construction Industry

Figure 19: Categories of customers in the construction industry

Figure 20: Activities and products/services found in the construction industry

Figure 21: Total Construction Work Annual Percentage Change

Figure 22: Total Investment in Residential & Non-Residential Buildings

Figure 23: Public vs Private Sector Demand in Total Construction Work

Figure 24: Distribution of Number of Contractors by Grade and public sector awards and by value

Figure 25: Source of Contracting Work

Figure 26: Growth Pattern of General Building Contractors on the cidb Register of Contractors

Figure 27: Growth Pattern of Civil Engineering Contractors on the cidb Register of Contractors

Figure 28: Break-down of construction cost

Figure 29: Company Organization Structure – Concentrated Functions

Figure 30: Company Organization structure – Divided functions

Figure 31: Company Organization structure – Sub-division by elements

Figure 32: Company Organization structure – Sub-division by products

Figure 33: Company Organization structure – Sub-division by products

Figure 34: The Construction Company as a Complex System

Figure 35: The Construction Project Life Cycle and Activities Performed

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Figure 36: Two-Dimensional view of a Project Environment and Perceived Uncertainty Experienced

by Individuals in Decision Units

Figure 37: Classification of Project Procurement Methods

Figure 38: Traditional Procurement Method Project Organization

Figure 39: Vicious Circle of Boundary Relationships in Traditional Procurement Method Project

Organization

Figure 40: Straightforward Approach to Design and Build

Figure 41: Straightforward Scheme Design Approach to Design and Build

Figure 42: Consultant Novation Approach to Design and Build

Figure 43: Develop and Construct Approach to Design and Build

Figure 44: Design and Build Project Organization and Relationships

Figure 45: Traditional brick house for two families

Figure 46: Clearing/removal of topsoil and site security provision

Figure 47: Setting out the Building

Figure 48: Foundation Construction

Figure 49: Production of the oversite concrete/surface bed

Figure 50: Brickwall and Lintel Construction

Figure 51: Roof Construction

Figure 52: Electrical and Plumbing Installation

Figure 53: Types of wall finishes

Figure 54: HVAC Installation

Figure 55: Work Break Down Structure for a building project

Figure 56: Explanatory Construction Programme

Figure 57: Detailed Example of a Construction Programme

Figure 59: Graphical view of budgeted expenses shown in Table 12

Figure 60: Construction Project Projected Cash Flow

List of Tables

Table 1: Courses of Action

Table 2: Distribution of Number of Contractors by Grade and public sector awards and by value

Table 3: Distribution of Contractors by Grade and other classification

Table 4: Background Profiles of Founding Members & Size of the Founding Team

Table 5: Distribution of the Contractors that have been upgraded on the cidb register by initial

Grade of Registration

Table 6: Level of Diversification of Construction Companies by Products and Services

Table 7: Company Mission and Vision Statements

Table 8: Sub-Division of Construction Companies by Area

Table 9: Construction Company Subdivision by products and services

Table 10: Construction company organization by divided function

Table 11: Key Services Provided by the Construction Manager in the Project Life Cycle

Table 12: Typical construction method and resource statement format

Table 13: Labour Output Rates Per Hour for Construction Operations

Table14: Explanatory Budget Format

Table15: Projected Cash Flow Statement

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• a significant contribution to a nation’s economy

Construction practitioners by the nature of their work, pride themselves on their common sense and

their ability to overcome obstacles This is true to some extent because without practical ingenuity, few

projects would be successfully built

Sometimes common sense leads to erroneous conclusions As an illustration, consider the two building

details in (a) and (b)

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Figure 1 a: Building Details

• In Figure 1(a) which column is largest? Column 3?

Figure 1 b: Building Details

• How would one design, quantify, bid or build the staircase shown in Figure 1(b)?

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It can be argued that these figures are only visual illusions, similar to illusions of touch, temperature, time, and performance These perceptual and cognitive illusions demonstrate an extremely important point Many times, an individual’s common sense – attitudes, values, preconceptions, and prejudices blinds him to obvious realities.

The key terms used in management include:

Management The direction and supervision of resources towards the achievement of a defined goal within

a time scale.

Controlling a business/industry (The description of management is not limited to one area or discipline – there are some aspects

of management that are expected to be achieved, regardless of which discipline or area of management).

Theory of

Management

This can be defined as the general principles of controlling a business/industry, tested and contrasted with practice.

Direction Instructions about how to do something.

Supervision To be in charge of a piece of work/labour and making sure that everything is done correctly,

safely etc.

Resources Something that is required in order to do work They include: money equipment, people

materials, information, skills, knowledge or any other item likely to be in limited supply.

Goal A desired end Something that you hope to achieve for example – quality of the building work.

Time Scale The period of time that it takes for a project to happen or be completed.

Planning • The act or process of setting out goals intended to be achieved, and what course of

action should be used in achieving the goals;

• Setting targets/time limits/course limits

Controlling • Comparison of the actual performance of a process against the original plan;

• It can also be defined as methods by which it is possible to establish and determine if work is being carried out as planned A comparison is then made against the plan and variations are noted and analyzed;

• There are three possible outcomes for each operation in construction work:

- It either remains the same;

- It is better; or

- It is worse

Forecasting Looking into the future to try and assess the possible trend of events, which are likely to

influence the conditions of the working situation, so that steps may be taken to overcome any difficulties before or soon as they arise.

Motivating • The reason why somebody does something that involves hard work and effort or the

reason somebody behaves in a particular way;

• An incentive or encouragement given to induce hard work, effort, and high productivity.

Coordinating The act of making parts of something, groups of people etc work together in an efficient and

organized way (Integrating)

Communicating Act of exchanging information, news, ideas, feelings, thoughts etc with other people Making known

Construction is a series of actions undertaken by construction companies and consultants, which

produces or alter buildings and infrastructure

Construction actions can be described as a complex interplay of people, tools, equipment and materials, coordinated by communication and paid for with money Construction actions include:

• design and management decisions;

• direct physical production of the facility on site;

• project close-out/final accounting; and

• rehabilitation and maintenance of existing facilities

The sets of actions, which make up most construction projects, are so complex that there must be a sophisticated system of coordination to ensure the work is undertaken correctly The actions which

form any one construction project are extremely complex and diverse because:

• they take place in widely different locations; and

• may involve practically every technology yet devised by humans

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1.2.2 What is construction management?

Construction management is the practice of ensuring that construction actions are undertaken effectively and efficiently

According to SACPCMP (2009), construction management is the management of the physical construction process within the built environment and includes the co-ordination, administration and management of resources The Construction Manager is the one point of responsibility in this regard

Fellows, Langford, Newcombe and Urry (2002), viewed construction management in two dimensions – the management of the business of construction and of projects They highlight that in practice, the two dimensions rely on each other This view is acknowledged by Radosavljevic and Bennett (2012) who posited that construction management is at the centre of both company and project management

as shown in Figure 2

Figure 2: Construction Management at the centre of both Company and Project Management

The contractor means any person or legal entity entering into contract with the client for the execution

of the works or part thereof (SACPCMP, 2009)

The construction manager can be said to be a professional who manages the building construction

process – prepares production documents, involved with the day to day management of construction projects, have responsibility for supervising people and reports to the client and senior management

This is to ensure that productive efforts undertaken by a company/individual are efficient and effective:

• Less time taken

• Less waste (Lean principles)

• Economic use of resources

• Higher quality products

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2 Theories Applicable To

Construction Management

Drucker (1996) argued that management is the function, which involves getting things done through other people The practical implications of this definition however depend on each individual business and industry

The contemporary conception of management would be considered at different periods because the varying phases over the course of time are none other than stages of the evolutionary process, which produced management, as it is known today

1 The Industrial Revolution (Circa 1750 to 1850)

The early days of management as a subject for study were related to the latter half of the Industrial Revolution This may be described as the period when mechanical power was introduced and applied

to the production of goods, and the earliest efforts to improve management at this time were those concerned with technical issues of production, because the social conscience of the day did not enforce responsibility for personnel problems

The pioneers in the field of management during this period included:

a) James Watt (1736–1819): whose main interest centered on the efficient use of large variety

of machinery This entailed the elaboration of production management processes such as:

• the layout of plant;

• the flow of operations;

• the planning of work schedules; and

• other technical matters as the standardization of parts and the pre-fixing of

dimensions

An inevitable consequence was an emphasis on the adequate training of skilled craftsmen to achieve production targets

b) Robert Owen (1771–1858): the pioneer of personnel management Between 1800 and

1828, he successfully put into practice social reforms to remedy the evils that contemporary industry accepted as inevitable Evils such as length of working day and lack of welfare

c) Charles Babbage (1791–1871): was among the first to advocate in relation to industrial

problems, the fundamental thinking which preceded the formulation of the principles of management His writings told little of the art of management as actually practiced in the early nineteenth century, but suggested the scientific or analytical approach to the problems

of manufacturing

2 Management Evolution (1850–date)

Important as the technical problems created by the introduction of machinery, were the social and organizational problems, which it brought in its train Particularly, problems that had to be managed during this period arose out of the following prevailing conditions:

• The evolution of the Trade Union System and the means of negotiation in collective

bargaining raised questions on the adequacy of wages and working conditions

• Financial administration made necessary by the increasing demand for capital and the

provision of finance for industry through the limited liability principle came into prominence

• Towards the close of the nineteenth century, the main problems were beginning to concern the processes of marketing or distribution, to meet the emerging competition of growing industrial countries in Europe and elsewhere In consequence, questions of the cost of

production and of estimating prices at which the products of industry will be sold profitably were beginning to be of importance

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Some of the pioneers of management principles who are introduced in this section will also be further discussed and presented subsequently.

a) Fredrick Winslow Taylor (1856–1915): the Father of Scientific Management, who

researched into better methods of doing work By detailed analytical experiments,

• he investigated problems of industrial organization such as relationship between a foreman and his work, and what constitutes a “fair day’s work”

• he measured the efficiency of workers to determine if they justify what they earn The Bonus System and functional incentive schemes were among the assumptions he was associated with

b) Henry Lawrence Gantt (1861–1919): His writings emphasized the human interest He is

remembered chiefly as the inventor of the Gantt chart for graphical planning Gantt charts were employed on major infrastructure projects, and continue to be an independent tool in project and construction management

c) Frank Bunker Gilbreth (1868–1924): The pioneer of motion study He researched chiefly

into “the one best way to do work” In 1912, he introduced the science of micro motion study – the ultra small basic elements of body movements Gilbreth discovered his vocation when as a young building contractor; he sought ways to make bricklaying faster and easier

d) Henri Fayol (1841–1925): He identified the processes that make up his every day practice

as a chief executive Namely: forecasting; planning; organizing; commanding; coordinating and controlling He was the first to analyze and specifically lay down a set of management principles; and the firm advocate of the principle that management can, and should be taught

e) Elton Mayo (1880–1949): The founder of human relations movement and industrial

sociology He set out in 1954 to study the effects of lighting on output famously referred to

as the Hawthorne Studies The term gets its name from a factory called Hawthorne Works,

where a series of experiments on factory workers was carried out between 1924 and 1932

At the end of the investigation, following changes in personnel, working conditions etc., it was found that:

i Human emotions could play havoc with the results of carefully planned and

controlled scientific experiments;

ii Workers develop group attitudes, norms and values, so that they react to management not as individuals, but as members of a group

The significant conclusion of his research is that none of the research findings gave the slightest substantiation of the theory that “the worker is primarily motivated by economic interest” The findings indicated that the efficiency of a wage incentive is so dependent on its relation to other factors that it is impossible to separate it as a thing in itself, having an independent effect.

As a result, the human relation theories were totally opposed to the findings of Taylor Elton Mayo himself discounted the incentives of money stating that: “Man’s desire to be continually associated with his fellow human beings is a strong human characteristic” The results obtained

by Elton Mayo interpret management as the leadership of people and a social task of human beings among other human beings

f) Hans Remold: His 1913 paper on Engineering Workshop Organization described and

enlightened management principles and methods, based upon his firm The company’s organization structure was based upon functional specialization; a number of the younger staff were trained in management, whilst monthly balance sheets and returns facilitated the preparation of the annual stock-taking and yearly balance sheet within a few days The company’s procedures were efficient and he believed that “the working of an efficient system requires men of fact and power to lead”

g) Abraham Maslow (1908–1970): He introduced the needs theory which was later developed

Hertzberg Maslow identified five set of goals, which he termed as basic needs, which if

unsatisfied tend to produce tension in the individual These needs are:

i Physiological needs

ii Safety needs of protection

iii Love needs of association, affection and belonging

iv Esteem needs of ego, self confidence, status and reputation

v Self-actualization needs

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The fundamentals of these theories rest on the basic principles that hierarchy is of importance – man has little regard for other things when there is thirst, hunger and homelessness and when these physiological needs are satisfied, he will be more concerned about of safety, love, self-esteem, etc Therefore, a want satisfied, is no longer a want.

h) Frederick Hertzberg (1923–2000): He further developed the study of needs and showed that Maslow only tackled half of the problem Hertzberg’s major work – The Motivation

to Work – shows a systematic and realistic approach to analyzing the main motivators His

initial study of people in an organization was of 200 engineers and accountants and the

analysis of the results showed two separate sets of factors causing workers dissatisfaction and satisfaction

He found out that the only way to motivate employees is by giving them challenging work in which they can assume responsibility Other distinct factors that satisfy other lower level needs are involved in job dissatisfaction He identified five motivator factors that have the strongest

influence on job satisfaction as:

• Achievement

• Recognition

• The work itself

• Responsibility

• Advancement/Promotion

Whilst the major factors identified to cause dissatisfaction were:

• Company policy and administration

i) Douglas McGregor (1906–1964): summarized the underlying assumption of scientific

management and in turn incentive schemes about human nature and motivation in 1960,

based on the pioneering work of Fredrick Winslow Taylor, in what he called Theory X

approach to management These assumptions are that:

i workers dislike work and avoid it if they can;

ii because of this dislike of work, they need to be controlled, directed, threatened and coerced with punishment in order to put them to work towards the organizational objectives;

iii workers like to be directed, like to avoid responsibilities, have little ambition and above all, want security of employment

Based on the pioneering work of Abraham Maslow, Douglas McGregor developed also, the

Theory Y approach to management He assumed that:

i the expenditure of physical and mental effort in work is as natural as play or rest;

ii external control and threat of punishment are not the only means of bringing about efforts towards organization objectives That man will exercise self-control in the service of the objective to which he is committed;

iii commitment to objectives is a function of reward associated with their achievement;

iv the average human being learns under proper condition, not only to accept, but to seek responsibility;

v the capacity to exercise a relatively high degree of imagination, ingenuity and

creativity in the solution of organizational problems is widely not narrowly distributed

in the population; and

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vi under the condition of modern industrial life, the intellectual potential of the average human being is partially utilized.

3 The Development of the Scientific Aspects of Management

A scientist proceeds by systematic reasoning and the scientific approach to the various aspects of management has developed those modern methods whereby, we try to substitute:

a) investigations and knowledge for individual judgment or opinions, when making plans and

decisions;

b) intelligent and critical use of “tools” for hunch or instinct, in practice; and

c) fairness (justice) and trust in place of bias and suspicion, on the human side

Fayol and Others

The principles of management can be discussed under the following headings:

1 Productivity: improving the necessary methods for an increase in the production of goods

by the use of mechanical power

The celebrated James Watt, of the steam-engine fame, became one of the earliest pioneers of

such development in his Soho Foundry The foundry was laid out in such a way that the flow

of materials through the various processes was logically and thoughtfully arranged

2 Social Scientific aspect of Management

The growth of the trade union system in the mid-nineteenth century meant that considerable attention be given to wages and working conditions

The pioneers in personnel administration of which Robert Owen and Charles Babbage were

by far the leading exponents, lived many generations before their principles including – length

of working days and welfare schemes and the scientific/analytical approach to the problems of manufacturing, became generally accepted

Attention therefore was given to proper financial accounting, maintenance of the appropriate books

of account, and a periodical preparation of a balance sheet for the benefit of the interested parties

4 Planning, Motivation and Efficiency

During the 1880s in the USA, the ‘Father of Scientific Management’ Fredrick Winslow Taylor,

commenced his researches in the Midvale steel works, where he was a charge hand over lathe

operators Soon, with his colleagues Lawrence Gantt and Frank Bunker Gilbreth, he was to found a movement, which bore the title Scientific Management

One of Taylor’s main preoccupations was concerned with creating a mental revolution amongst both men and management in industry He believed that both sides of industry were far too concerned with how the surplus moneys of the business were divided, when they should be more concerned with how to increase the extent of the surplus As a means to increase the surplus,

he advocated better planning and better motivation to work with a proper and adequate use

of incentive and bonus system

As well as being concerned with proposals for a mental revolution, Taylor and his associates Gantt and Gilbreth spent a considerable amount of time and effort on the elaboration of techniques such as:

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• the specification of job responsibilities;

• time and motion study;

• planning schedules; and

• other tools to aid the adequate planning and control of production

5 Processes of Management

Henri Fayol produced a paper in France, the basis of which is still accepted today as describing

the processes of management Fayol was the General Manager of a large French iron and steel combine which had mining as well as metallurgical interests In 1908, he presented a paper to one of the metallurgical societies in which he attempted to categorize the processes, which he understood to be involved in his day-to-day practice as a chief executive

The basis of his analysis was that a management process consisted of five areas – planning, organizing, commanding, coordinating and controlling Fayol was the first person to advocate what at that time was considered to be a somewhat revolutionary thought, namely that management principles could and should be taught

6 Human Principles of Management

Simultaneously with Fayol’s display of interest in the principles of management in France, Mary

Follett, in the USA was working on the many social and industrial problems of the time She

presented a series of papers on the human principles of management

Other later pioneers in the field of human relation theories included – Elton Mayo, Hans

Remold, Abraham Maslow, Hertzberg and McGregor, who developed theories of performance,

organization, motivation, needs, satisfaction, threats and reward

From the 1920s onwards, systematic study of the many branches of management has led to the propounding of a multitude of theories Many textbooks have been written and research in universities and business schools has come to be accepted as one part of the training of competent managers Furthermore, a body of knowledge has been built up concerning the principles of management

Ludwig von Bertalanffy, a Biologist, conceptualized General Systems Theory He viewed that the principles

of systems and sub-systems he observed in natural phenomenon could be abstracted and applied across different disciplines in the same way that mathematics has become universally applicable to most disciplines General Systems Theory is like all sciences, grounded in a systematic search for laws about the universe Systems theory can be categorized into five areas:

1 Order: regularity and randomness are preferred to lack of order or chaos;

2 Orderliness in the empirical world is interesting and attractive to the systems theorist;

3 There is order in the external or empirical world – laws about laws;

4 To establish order, quantification and mathematics are valuable aids; and

5 The search for order and law necessarily involves the quest for realities embedded in abstract laws

The main characteristics of the General Systems Theory includes:

1 Inter-relationships – Every system theory needs to take into account the inter-relationships, inter-dependence, of objects and their attributes Independent and unrelated elements cannot constitute a system

2 Holism – the systems approach is not an analytical method of breaking things down into constituent parts to study in isolation It is an approach to viewing things as a whole,

accounting for their inter-relations and interactions

3 Goal seeking – a system is assumed to be goal seeking because all systems embody

components that interact Interaction results in some goal or final state being reached or some equilibrium achieved

4 Inputs and Outputs – all systems comprise of inputs that when transformed into outputs, enable the system to attain its goals All systems produce outputs that are needed as inputs

to other systems In an open system, it is acknowledged that some of the inputs are from the systems environment

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5 Transformation process – All systems are transformers of inputs such as raw material,

energy and information into a different form, which become the output e.g a building

6 Entropy – this is the process of transforming inputs from a more ordered to a less ordered state Systems try to work against this by utilizing energy from their environment to convert inputs into more ordered states

7 Regulation – interacting components of a system are regulated (managed) in some way, so that the system can achieve its goals (objectives) Objective setting is a form of regulation

(control) and is embodied in human systems as the planning activity A requirement for

effective control is feedback Regulation and control are areas considered by Cybernetics

8 Hierarchy – Systems are generally complex and are composed of smaller sub-systems in a

nested hierarchy For example, a building is made up of the architectural, structural and

mechanical and electrical sub-systems The structure of systems has implications for its

regulations because simple structures are more easily managed than complex ones, which

have more interacting components Projects with fewer construction activities are more

easily managed than projects with interacting and dependent activities

9 Differentiation – in complex systems, specialized units perform specialized functions This differentiation of functions by components is a characteristic of all systems and enables

the focal system to adapt to its environment Differentiation, specialization, and division of labour are practically identical concepts

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of a successful, international career.”

10 Equi-finality – this simply means that open systems have equally valid alternate pathways to reach the same objective In open systems, the final states are not constrained by the initial condition, but can be reached from different starting points and in different ways In closed systems, a direct cause and effect relation can be found between its initial condition and its final state

The most important types of systems for projects and project organizations are open systems All living systems including social organizations such as business enterprises or projects are goal oriented

Systems typically have inputs and outputs and a transformation activity that converts the former into the latter Inputs and outputs are therefore typically inert items that can be stored, seen or in some way inspected This is a useful attribute for control because it is possible to review and confirm that a process has been completed and it is also possible to check the quality of the output by comparison against a standard

Figure 3: Process View of Systems

In management systems and many other systems, there is a feedback loop that examines the output against certain predetermined standard or ‘goal’ and if it is not acceptable, then further inputs are provided to the process until the desired state is reached

Figure 4: Process view of Control Systems

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Figure 4 shows the relationship of the feedback loop to the primary system process Each of the three elements, Detector, Comparator, and Affector is itself a complete process that can be represented as input-to-transform-to-output

Boulding (1956) developed a classification of systems based on their complexity, which he arranged into

a hierarchy of nine levels as follows:

1 Frameworks – these are static structures At the most basic level, all systems are described in terms of their static relationships prior to moving to the dynamic aspects Static structures can be described by function, position, structure, relationship and so on

2 Clockworks – these are simple dynamic systems with predetermined movements such as the Solar System Most systems that tend towards equilibrium are included at this level

3 Cybernetics – these are goal-seeking systems that maintain equilibrium within certain limits but lack the ability to set or change a goal Examples are thermostats

4 Open systems – these are self-maintaining structures that rely on a throughput of material and energy These systems are represented by unicellular life forms and are able to replicate themselves

5 Genetic-societal – these are complex life forms that are unable to accept or act on

information, but have some form of division of labour Examples are plants

6 Animals – these are systems with greater mobility and self-awareness They have specialized information receptors to allow the structuring and storage of information

7 Humans – humans are differentiated from animals by virtue of being aware of their awareness This enables them to reflect on life and to plan for it

self-8 Social organization – these are systems that assign people into roles People are moulded by the roles they play and the history they are part of

9 Transcendental – this is the level of the unknowable, things that escape us

2.2.4 Complexity

In mathematical terms, complexity can best be understood in terms of probability Mathematical complexity can be measured based on the probability that a system is in a particular state at a given time In non-quantitative terms, it can be viewed as the quality or property of the system that is the outcome of the combined interaction of four main determinants:

1 number of elements making up the system;

2 attributes of the elements making up the system;

3 number of interactions between the elements of the system

4 degree of organization inherent in the system (predetermined rules guiding interaction)

This implies that the larger a system, the more components it will have and thus, more connections will need to be maintained between the components (see Figure 5) As the system gets larger, the number

of components may grow in a linear fashion but the number of connections will grow exponentially

The formula that allows this complex relationship to be modeled (Davidson-Frame, 2002, p 25) is as follows:

Figure 5: Complexity: Systems and Channels of Communication

Size is another aspect of complexity because the human brain can only handle a maximum of seven to ten items of information simultaneously, so when the volume of information increases, the capacity of the brain to handle this information overload is reduced

Complexity can also be viewed in terms of variety Variety is defined as the number of possible states that the item being measured can have (Beer, 1994, p 32) It therefore implies that for each channel

of communication, the greater the variety of information it can carry, the more complex the project, situation or system is Typically, channels of communication reduce the variety of information available about a system A case in point is a telephone conversation where a team member is trying to describe

a visual image Increasing the number of communication channels increases the complexity of the information that has to be managed and absorbed at the receiving end, but it gives a more complete view of the situation

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Beer, S (1994) The Heart of Enterprise, ISBNO471948373, Wiley & Sons

Boulding, K.E (1956) General Systems Theory – The Skeleton of Science, Management Science, 2, 3,

197–208

Davidson-Frame, J (2002) The New Project Management, Tools for an Age of Rapid Change, Complexity

Schoderbek, P., Schoderbek, C., and Kefalas, A (1990) Management Systems Conceptual Considerations, ISBN0465068782, IRWIN

Construction management is needed to ensure the specialist actions needed to produce modern buildings and all parts of the incredibly physical infrastructure can be undertaken efficiently and effectively According to Radosavljevic and Bennett (2012):

• construction management is at the centre of both company and project management

• only well-run construction companies can undertake construction projects efficiently and predictably

89,000 km

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‘Ǧ …‘ˆ‘”ƒ…‡•

Figure 6: A Systems view of Managing Construction

(Adopted from Smallwood, 2011).

Construction management involves challenges that result from the unique nature of construction projects, which are as follows:

1 Construction projects require a bewildering range of:

a) Resources (4Ms)

b) Specialization – knowledge and skills

2 Construction projects have features similar to the products and production processes, which characterize manufacturing and those, which characterize project-based industries

3 The physical characteristics of construction projects are as a result of:

a) many different technologies – sometimes depending on global networks of

organizations;

b) local industries;

c) construction companies;

d) building regulations and standards available locally and internationally

4 Construction projects have:

a) individual locations (no two sites are the same);

b) complexity (a system with many parts);

c) uncertainties (lots of risks)

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This combination of challenges is not comprehended by general management theories – which focus more

on human management and production theories, which are rather straightforward, repetitive, predictable and uncomplicated Secondly, a focus only on project management has limited construction’s performance The development and progress of the construction industry will depend on an understanding of project management to be combined with an equal focus on company management

This section presents, and is heavily reliant on the theory of construction management proposed by Radosavljevic and Bennett (2012), which identify the actions that help construction projects’ processes and companies to be efficient Project and company management are treated as an integrated whole to take account of the major influence company managers have on projects, and the impact of project/construction managers on companies

Theory of construction management begins with the theory that construction management aims to enable construction to be undertaken efficiently and effectively within agreed objectives

Efficiency can be described as meeting agreed objectives, or when used generally, it means performance

within the power and resources available to a particular person or company

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Agreed objectives are the outcomes, which motivate those in construction All construction stakeholders

should explicitly agree to objectives and the measures used to manage actual performance

The first and most obvious requirement in achieving the objective of construction management is to select competent teams to undertake all the essential construction actions

Construction Teams can be described as formal group of individuals who work together on a permanent

basis to undertake specialist construction, and the essential machines and equipment the team uses Construction team members include:

There are two types of relationship shown in Figure 7, between construction teams:

1 Boundary relationships: wherein behaviour is guided by the teams’ perception that they are

parts of different organizations;

2 Internal relationships: wherein behaviour is guided by the teams’ perception that they are

parts of a joint organization

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Figure 7: Relationships between construction teams

(Adopted from Radosavljevic and Bennett, 2012)

Figure 8 shows the quality of the relationship between the construction team members It proposes that there is an inverse relationship between the time devoted to construction actions and the time devoted

to interactions with other teams

The task of establishing effective relationships in a manner, which ensures construction is undertaken efficiently, is challenging because construction can create barriers, which restrict the most competent teams Construction management therefore needs to devise strategies, which remove them or at least reduce their impact on efficiency There are three factors in construction projects, which can lead to inherent difficulties in construction projects, which ultimately affects efficient construction processes These are:

• Design

• Construction teams employed to undertake the project

• Environment which influences the project

Figure 8: Quality of Relationships between construction teams

(Adopted from Radosavljevic and Bennett, 2012)

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Design:

The design of a facility determines:

• the number of distinct technologies involved in its construction and how closely they are interrelated;

• this in turn influences the number of separate construction teams required to undertake the work and determines the need to establish relationships between them

These two key characteristics – quality of relationships and number of interacting teams, directly influence the complexity of the construction project organization, which in turn contributes to the inherent difficulty it faces Construction management strategies exist to mitigate the inherent difficulty actually faced by a project organization working with any given design More advanced construction management strategies aim to influence the design in ways, which reduce inherent difficulty at source

How does the design of a facility influence the number of construction teams involved in its construction and the interactions between them?

• Distinct technologies result from the application of knowledge and skills which provide the practical basis for individual construction teams;

• Any given set of technologies can be delivered by many different combination of

construction team, which requires simple or complex interactions

The level of complexity of the design is a major factor in determining inherent difficulty

Construction Teams:

Variation in the construction teams’ level of performance brings about complexity that impact on construction difficulty The construction teams’ influence on construction difficulty comes from undertaking their work at an inconsistent pace because construction teams’ have good days and bad days thereby causing output to vary from day to day even when the surrounding conditions are similar This inconsistency is measured in terms of variability around the norm Secondly, the construction teams’ involved in a construction project, undertake the required work to the level of efficiency established

by the local construction industry and more importantly, their perceptions of what constitutes the key performance objectives often differ and this has a direct influence on the level of efficiency, which can

be achieved

Performance variability is a measure of the range of performance achieved by a construction team The

performance variability achieved by teams vary widely but typically ranges around a norm by + or – 50%

or more It is acknowledged that the variability of briefing, designing, planning and procurement actions

is often greater than manufacturing, production and commissioning Different unfortunate events within these construction actions cause variability, which is a source of complexity for construction project organizations and therefore of the inherent difficulty they face

Figure 9: Inherent difficulty of construction projects

(Adopted from Radosavljevic and Bennett, 2012).

Figure 9 shows the component parts of inherent difficulty and suggests its direct influence on construction management strategies

Construction Environments:

The fourth source of inherent difficulty is the impact of factors external to a construction project, which

is outside the control of the construction project organization termed – force majeure Factors of almost

every imaginable type may interfere with the progress of a construction project All construction projects are open to external risk that will interfere with progress

Inherent Difficulty: is a measure of the complexity and external interference experienced by a

construction project organization using traditional/local construction practice before any construction management strategy is applied

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External Interference: is a measure of the impact of factors external to a construction project It is

normally expressed as the percentage of time construction teams are delayed by external factors to the total project construction time External interference is directly related to the occurrence and amount

of delay

Complexity: Complexity is a measure of the number of interacting construction teams involved in a

construction project, the quality of the relationships between them and their performance variability Complexity increases directly with the number of construction teams involved, inversely with the quality

of relationships, and directly with performance variability

The theory of construction management accepts that construction faces inherent difficulties that are unavoidable Nevertheless, the theory is based on the rigorous view that the purpose of construction

management is to reduce inherent difficulty Construction management strategy is a coordinated set

of decisions, which guide a construction project organization The decisions aim to reduce the inherent difficulty of construction in ways, which increase the chances of agreed objectives, being achieved This

means in theory that there are sets of construction management decisions, which enable construction

to be straightforward and certain

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